Tourism Holdings Rentals Limited: Sell-off is overdone, creates a great buying opportunity
About the author:
- Author name:
- By Belinda Moore
- Job title:
- Senior Analyst
- Date posted:
- 10 May 2023, 8:00 AM
- Sectors Covered:
- Agriculture, Food & Beverage, Travel and Chemicals
- Tourism Holdings Rentals Limited's (ASX:THL) Investor Day showcased its strong market position, leverage to a tourism recovery, the material synergy benefits from merging with Apollo (ATL) and management's strong financial discipline (focused on increasing ROFE).
- While we were hoping for upgraded synergy targets and possibly upgraded FY23 guidance, these didn’t eventuate. Although FY23 NPAT may now be marginally impacted by a timing issue (but boosts FY24), we were always focused on the full recovery year and achievement of synergies or FY25.
- We think the stock has been oversold. THL is now trading on a recovery year (FY25) PE of only 8.7x, which is attractively priced for a global, market leader. Add.
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